Multiple Time Frame Relative Strength Index

The Multiple Time Frame Relative Strength Index indicator provides a comprehensive view of momentum across various time intervals to help traders identify long-term trends and potential reversal points.

Usage

The Multiple Time Frame Relative Strength Index is used to align short-term price action with higher-timeframe momentum. By plotting the RSI from different timeframes (e.g., Weekly and Monthly) on a single chart, traders can:

• Identify Long-Term Trends: Determine the prevailing market direction by observing the position of higher-timeframe RSI lines relative to the overbought and oversold levels.
• Spot Pullback Entries: Look for opportunities where the current timeframe RSI moves against the higher-timeframe trend but begins to revert, signaling a potential entry point.
• Exhaustion Signals: Recognize potential trend exhaustion when the longer-timeframe RSI values enter extreme overbought or oversold zones.

Details

This script calculates the standard Relative Strength Index (RSI) for the current chart timeframe and uses the request.security function to fetch RSI values from two user-defined higher timeframes. To ensure visual clarity and immediate interpretation, the lines change color based on their position relative to the threshold levels:

• Green: The RSI value is above the Overbought Level.
• Red: The RSI value is below the Oversold Level.
• Gray: The RSI value is between the thresholds (neutral zone).

Settings

• Source: The price data used for the RSI calculation (e.g., Close, Open, High, Low).
• Length: The number of bars used to calculate the RSI.
• Timeframe 1: The first higher timeframe to fetch RSI data from (defaulted to Weekly).
• Timeframe 2: The second higher timeframe to fetch RSI data from (defaulted to Monthly).
• Overbought Level: The upper threshold used to signal bullish momentum or exhaustion.
• Oversold Level: The lower threshold used to signal bearish momentum or exhaustion.

FAQ

How do I interpret the different line thicknesses?

In this script, the current timeframe RSI and Timeframe 1 RSI are plotted with a standard width, while Timeframe 2 (the highest timeframe) is plotted with a thicker line to emphasize the primary trend.

What do the dashed lines represent?

The dashed lines represent the user-defined Overbought and Oversold levels (defaulting to 55 and 45), which serve as the triggers for color changes and alert conditions.

How can I access this script?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.